CA Final DT – Part I – Chapter 10 – Aggregation of Income – Set off and Carry forward of losses MCQs

In which of the following cases inter head set off is not allowed?

Which of the following statements is correct?

Loss under the head capital gains can be set off against

Loss under the head Profits and gains from Business or Profession cannot be set off against income under the head

Loss under any other head other than capital gains can be set off against

Maximum loss from house property that can be set off against income from any other head is

Mr. Aarush (aged 25 years) submits following particulars pertaining to A.Y. 2022-23.
i)  Income from Salaries (computed) – Rs. 5,25,000/-
ii) Loss from Self occupied House property Rs. 85,000/-
iii) Loss from let out house property Rs. 1,52,000/-
iv) Business loss Rs. 10,0000/-
v)  FD interest received from bank Rs. 75,000/-The total income of Mr. Aarush for A.Y 2022-23 if he has not opted for provisions of Section 115BAC is:

If there is unabsorbed loss under the head House Property, such loss will be carried forward to the next A.Y and set off from Income under the head

Loss under the head House Property is allowed to be carried forward upto ____

Which of the following business losses cannot be carried forward?
i)   Loss from Business
ii)  Loss from Profession
iii) Loss from Vocation
iv) Loss from speculative business

Which of the following statements are true?

Maximum period for carry forward and set off of business losses is–

Sudarshan Ltd had to discontinue its business due to the severe damage that was caused to its factory building due to floods. The company had sustained business loss amounting to Rs. 8,00,000/- in P.Y. 2018 -19. Such loss would be allowed for set off and carry forward only if the business of Sudarshan Ltd is re-established within a period of ________ from end of PY of discontinuation.

Ms. Shanthi, a resident individual furnishes the following particulars for P.Y. 2021- 22.
Income from Salary (computed) – Rs. 6,00,000/-
Income from house property (Rs.) – (80,000/-)
Income from business (non-speculative) (Rs.) – (95,000)Income from Speculative business (Rs.) – (10,000)
Short term capital losses (Rs.) – 50,000/-
Long term capital gains taxable u/s 112 – Rs. 40,000/-
The total income chargeable to tax for A.Y. 2022-23 assuming she does not opt for the provisions of Section 115BAC would be –

Which of the following are the conditions to be satisfied by the amalgamating company in order to claim the benefit u/s 72A
i)   It should have been engaged in business in which accumulated loss or depreciation should have remained unabsorbed for 3 or more years
ii) It should have been engaged in business in which accumulated loss or depreciation should have remained unabsorbed for 2 or more years
iii) It has held continuously as on date of amalgamation, at least 3/4th of the book value of assets held by it, 2 years ; prior to the date of amalgamation
iv) It has held continuously as on date of amalgamation, at least 1/2 of the book value of assets held by it, 2 years ; prior to the date of amalgamation

The accumulated loss and unabsorbed depreciation directly relatable to the undertaking transferred by the demerged company to the resulting company shall be allowed to be carried forward and set off in the hands of –

The accumulated loss and unabsorbed depreciation not directly relatable to the undertaking transferred by the demerged company to the resulting company shall be allowed to be carried forward and set off in the hands of –

Which of the following are the conditions to be satisfied by the successor co operative bank in order to claim the benefit u/s 72AB?

“A” Co operative Bank is the demerged cooperative bank and “B” Cooperative Bank is the resulting Cooperative Bank. If the business re-organisation took place on 01/12/2021, how would the previous year be considered for the purpose of set off and carry forward of unabsorbed business losses and depreciation?

Losses sustained by an assessee in speculation business, if cannot be set off in the same year can be carried forward to subsequent years and set off against income from

Losses sustained by an assessee in speculation business, if cannot be set off in the same year can be carried forward to subsequent years and set off against income from speculative business for a maximum period of:

Loss from trading in derivatives is-

In which of the following circumstances, the business of a company is deemed to be carrying on speculation business?

What is the time limit for carry forward and set off of losses by a specified business?

Section 74 prescribes that if the loss carried forward is in the form of short term capital loss, it shall be set off against –

Section 74 prescribes that if the loss carried forward is in the form of long term capital loss, it shall be set off against –

Maximum period for carry forward and set off of loss under the head capital gains is-

During the PY 2021 -22, Ms. Suma has the following income and brought forward losses:STCG on sale of shares – Rs. 2,55,000/-Brought forward Long term capital loss of A.Y. 2020-21 – Rs. 85,000/- Short term capital loss of A.Y. 2021 – 22- Rs. 40,000/-Long term capital gain – Rs. 78,000/-What would be the taxable capital gains in the hands of Ms. Suma?

Losses from the activity of owning and maintaining race horses can be set off against-

Maximum period for carry forward and set off of Losses from the activity of owning and maintaining race horses is-

Ms. Dhanya has the following income for the P.Y. 2021 -22:Income from the activity of owning and maintaining horses – Rs. 95,000/-Income from textile business – Rs. 1,15,000/-Brought forward textile business loss relating to AY 2021-22 – Rs. 60,000/-Brought forward losses from the activity of owning and maintaining the race horses relating to A.Y. 2019 -20 Rs. 1,06,000/-What is the total income in the hands of Ms Dhanya for AY 2022-23?

M/s PQR Associates is a partnership firm which has an unabsorbed business loss amounting to Rs. 2,55,000/- and unabsorbed depreciation amounting to Rs. 1,76,000/- relating to the P.Y. 2019-20.The firm got re constituted on 01/07/2021 due to the death of Mr. Q. The profit sharing ratio of the partners P, Q and R is 3:2:1 respectively. What will be the amount of unabsorbed loss and unabsorbed depreciation that can be carried forward by the firm?

Which of the following cases do not require compulsory filing of return of losses u/s 80?
i)        Speculation business loss to be carried forward u/s 73(2)
ii)      Loss under the head Capital Gains to be carried forward u/s 74(1)
iii)      Loss from house property to be carried forward u/s 71B
iv)      Unabsorbed depreciation

During the P.Y. 2021-22, Ms. Adithi has following income and brought forward losses: Short term capital gains on sale of shares ₹ 1,50,000 Long term capital loss of A.Y. 2020-21 ₹ (96,000) Short term capital loss of A.Y. 2022-23 ₹ (37,000) What is the capital gain taxable in the hands of Mr. Adithi and how much loss can be carried forward for the A.Y. 2022-23?

Raju, owner of a house property, incurs loss of Rs. 7,50,000/- from house property. He has filed return of loss u/s 139(1) after due date. Will he be eligible to carry forward his loss of Rs. 7,50,000?

As per Section 32(2), which of the following can be carried forward in case the property is inherited by legal heir?

The correct order of set off is:
i)    Current year depreciation
ii)   Unabsorbed depreciation
iii)  Brought forward business or profession losses
iv)  Current year capital expenditure on scientific research and family planning
v)   Unabsorbed capital expenditure on scientific research
vi)  Unabsorbed expenditure on family planning

The sequence applicable for set off of losses shall be –

Mr. Sanju incurred loss in activity of owning and maintaining racehorses Rs. 70,000/-; Winnings from lottery (net) Rs. 140,000/-; Loss in card game of AY 2010 – 11 Rs. 6,000/- What is his Gross Total Income for AY 2022- 23.

What can be the maximum amount of negative income of self occupied house under the head Income from House property?

Mr. Biju incurred short term capital loss of Rs. 20,000/- on sale of shares through the National Stock Exchange. Such loss can be set off –

For the PY 2020-21, an assessee suffered a business loss of Rs. 3,75,000/-. His income from other sources is Rs. 2,85,000/-. His due date of return was 31st July 2021 but he submitted the return on 9th September 2021. The assessee in this case

Business loss of an amalgamating company shall –

In case of closely held company (not being a company in which public are substantially interested), the losses incurred in any year prior to the previous year carried forward and set off if –
(i)  on the last day of PY, the shares of company carrying not less than ______ of voting power
(ii) were beneficially held by persons who beneficially held shares of the company not less than _________ of the voting power on the last day of the year(s) in which loss was incurred.